Workers Fear Loss of Jobs as Chinese Company Takes Over Dangote Cement Rival, Lafarge
- Holcim said that it will sell its 83.8% ownership in Lafarge Africa to the Chinese cement company Huaxin Cement Company
- The company's intention to sell its stake to Huaxin has caused a rise in employee apprehension and uncertainty
- Under the new ownership, employees are upset about potential negative repercussions as they have little to no information about their future
Holcim, the largest shareholder in Lafarge Africa stated on December 1 that it will sell Huaxin Cement Company, a Chinese cement manufacturer, its 83.8% stake in Lafarge Africa.
Source: UGC
Upon conclusion of the purchase, Lafarge Africa would have a $1 billion 100% equity value.
In a notification to the Shanghai and Hong Kong Stock Exchanges, Huaxin cautioned that the acquisition might result in a mandatory takeover, which could delist Lafarge Africa from the Nigerian Exchange Limited (NGX) and grant Huaxin total ownership of the company.
Employee anxiety and uncertainty have however increased due to Holcim's plan to sell its interest to Huaxin. Based on the experience of Lafarge Zambia employees after a similar divestiture by Holcim, staff members are upset about possible negative effects as they have little to no information about their future under the new ownership.
What happened in Zambia
Holcim sold its operations in Zambia to Huaxin Cement Company in 2021. Holcim previously possessed a 75 percent ownership in Lafarge Zambia (now Chilanga Cement), which was sold to Huaxin for $75 million, just like Nigeria.
After Holcim's ownership was transferred to Huaxin in Zambia, former workers who wished to remain anonymous told the Lafarge Africa union that they were presented with new employment contracts that were less favorable than their old ones. They claimed that previous service durations, contract stipulations, and human resource policies were all ignored.
Consequently, a large number of workers quit, losing their benefits. Despite the absence of formal plans for downsizing or redundancy, the corporation allegedly used labor practices and workplace circumstances that subtly encouraged workers to quit, leading to sudden departures.
Situation in Nigeria
Despite promises given to workers and union representatives that Holcim's sale of all of its shares to Huaxin would not affect employment, cause layoffs, or result in downsizing, union representatives are still skeptical.
They contend that comparable promises were made during the divestiture of Lafarge Zambia; nevertheless, employees had to deal with unfavourable working circumstances and lost their jobs.
The union has voiced serious concerns about the new management's possible disregard for international labor standards and human rights, based on the experiences of former Lafarge Zambia employees.
The company's employees' union has urged government officials and regulators to step in and defend workers' rights.
According to a Lafarge staff member,
“Treating employees with dignity is a fundamental human right. Holcim must engage in dialogue with employee representatives to discuss available options and ensure that contracts are severed properly. Anything less is unacceptable.”
BusinessDay reported that efforts to get Holcim to respond to the issues were abortive as the company’s media team did not respond to email inquiries.
SON sends message to cement manufacturers
Legit.ng reported that to lower the number of building collapse accidents in the nation, building engineers, cement producers, and block makers have been directed to adhere to standards by Dr. Ifeanyi Chukwunonso Okeke, the Director General/Chief Executive of the Standard Organization of Nigeria (SON).
He made this statement on Thursday, April 18, while block molders were attending a one-day sensitization session in Abeokuta, Ogun State.
Building collapses are a serious risk to Nigeria since they endanger the nation's construction sector and overall development, according to the DG, who was represented by Southwest Talatu Ethan, Director.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
